Igo Limited · ASX:IGO
Igo — Shareholder Meeting (November 2017)
23 slides from Igo's shareholder meeting presentation, Nov 24, 2017
Slide 1: Annual General Meeting 24 November 2017
Annual General Me 24 November 2017 WD = Pg oa ee G “ye ee » a Ne do. 6 "a er. ip) = == i cs “a © 4 ‘eo: \ cy © LL Delivery and Discovery
Slide 2: Cautionary statements & disclaimer
Cautionary statements & disclaimer For personal use only • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to make an offer or invit
Slide 3: Corporate Summary
Corporate Summary Post capex and positioned for strong FY18 For personal use only A$M FY17 FY16 Change % Share Ownership Revenue 422 417 1% Substantial Holders Institutional Ownership(4) Underlying EBITDA(1) 151 138 9% Mark Creasy 16% Australia 61% Net Profit after Tax 17 (59) n/a FIL 9% USA & Canad
Slide 4: Steady FY17 and Step Change FY18
Steady FY17 and Step Change FY18 Nova transition from construction and development to commercial production For personal use only FY17 vs FY16 1Q18 vs 4Q17 A$60M A$22M 1% 9% Stronger 28% 102% Stronger Balance Balance Revenue EBITDA(1) Revenue EBITDA(1) Sheet(2) Sheet(2) 1) EBITDA (Underlying EBITDA)
Slide 5: A Company with Purpose
A Company with Purpose To create long-term shareholder value For personal use only IGO EBITDA Profile (A$M)(1)(2) • Nova in commercial 600 600 production from 1 July 2017 500 500 • Project delivered earlier than feasibility study 400 400 • Costs within 3% of January 300 300 2015 uninflated estimate
Slide 6: Right people in the right place at the right time
Right people in the right For personal use only place at the right time • Common Purpose • Culture of growth and performance • Nurturing the IGO Way 6
Slide 7: Investing in our future
For personal use only Investing in our future • Learning & Development • Graduate interns • Apprentices • Vacation work • Scholarships • Support / guidance for secondary students 7
Slide 8: Sustainability and Safety
Sustainability and Safety Focused on better outcomes for our people For personal use only ACSI Rating of ASX200 Sustainability Reporting(1) Key Lag Safety Metrics(1,2,3) 9 8 Leading 7 LTIFR 12 MMA MTIFR 12 MMA 6 Detailed 5 Moderate 4 Basic 3 2 No Reporting 1 Sector Sector ASX 200 0 Average Leader Av
Slide 9: IGO Portfolio Overview
IGO Portfolio Overview Diversified portfolio of nickel, gold, zinc and copper production For personal use only A$51M A$148M FY18E EBITDA Split(1) FY18E EBITDA Split(1) A$8M A$139M FY18E EBITDA Split(1) FY18E EBITDA Split(1) 9 1) Macquarie Research dated 14 August 2017
Slide 10: Long
Long A solid and consistent performer in the IGO portfolio For personal use only • Acquired in 2002 • Since produced c.133,000t of contained Ni • A$199M free cashflow from FY11 to FY17 • Care and maintenance plan for late FY18 • Greenfields exploration will continue Long Life of Mine Production and
Slide 11: Jaguar
Jaguar Improving performance For personal use only Jaguar Production Tonnes 9,000 8,331 8,105 8,000 7,399 7,000 6,599 6,000 5,000 4,000 3,000 2,000 1,121 869 688 1,000 530 0 2Q17 3Q17 4Q17 1Q18 Zinc in concentrate Copper in concentrate 11
Slide 12: Jaguar Upside
Jaguar Upside(1) Depth extensions at Bentley, new deposit at Triumph and ongoing regional exploration For personal use only Bentley Mine Triumph Deposit 1) For further information see ASX release 26 Jul 2017 – Jaguar Value Enhancement Programs 12
Slide 13: Tropicana
Tropicana Consistent performance For personal use only Tropicana Production (100%) and ASIC oz A$/oz 140,000 1,286 1,400 1,229 1,167 120,000 1,051 1,200 100,000 1,000 80,000 800 60,000 600 40,000 400 20,000 200 0 0 2Q17 3Q17 4Q17 1Q18 Ounces Produced (100%) All in Sustaining Costs AUD $/oz Direction
Slide 14: Tropicana Value Enhancement
Tropicana Value Enhancement For personal use only • Plant nameplate expanded from 5.8 to 7.5Mtpa - further expansion to 8.1Mtpa (+better recovery) in CY18 • Long Island to extend mine life with larger diggers, strip mining & in-pit dumping of waste to reduce mining cost – three decision points Minin
Slide 15: Tropicana Upside
Tropicana Upside Evaluating underground and regional opportunities For personal use only Boston Shaker Underground Drilling Regional Exploration 3.0 g/t grade shell Mineralisation 0.3 g/t grade shell Corridor BWD017 31m @ 4.20 g/t from 340m 14m @ 6.10 g/t from 355m BWD019 17m @ 5.53 g/t from 382m 30
Slide 16: Nova Fly-through
For personal use only Nova Fly-through
Slide 17: Commitment to Discovery
Commitment to Discovery A$50M commitment to exploration in FY18 For personal use only FY18 Exploration Budget A$10M Fraser Range Nova A$1.5M A$21M Tropicana A$4M Jaguar Long A$4.5M Other Greenfields A$9M 17
Slide 18: Fraser Range Exploration
Fraser Range Exploration In search of the next Nova For personal use only • 12,000km2 tenure consolidated • Systematic exploration underway • Bedrock geochem sampling with aircore • Multiple geophysics programs • Spectrem airborne EM survey started • Drilling of targets progressively as identified 1
Slide 19: Nova & Fraser Range aligned to growing demand for metals for energy storage
Nova & Fraser Range For personal use only aligned to growing demand for metals for energy storage • 24kg nickel • 24kg cobalt & • 91kg copper in a Chevy Bolt Source data: UBS Research titled Electric Car Teardown – Disruption Ahead dated 18 May 2017 19
Slide 20: EV Disruption
EV Disruption Nickel expected to be a big winner from this For personal use only Increasing Demand (c.15M by 2025)(1) • Nickel market already in 25 20 supply deficit 15 (m) 10 - Growing demand for nickel in 5 0 stainless steel 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 HEV
Slide 21: Increased Nickel demand
Increased Nickel demand Nickel to out-perform gold, copper & zinc For personal use only Positive Outlook for Nickel Price(3) Continuing Nickel Supply Deficit(1) 1.5 Ni ktpa 2017 supply Ni ktpa 3,500 3,500 1.4 deficit of 3,000 100kt(2) 3,000 1.3 2,500 2,500 1.2 2,000 2,000 1.1 1,500 1,500 1,000 1,000
Slide 22: For personal use only
• Our business is strong For personal use only - Underpinned by long life assets at Nova & Tropicana • Now in positive cashflow stage and balance sheet strengthening • Nickel upside looks great - Actively exploring for more exposure on Fraser Range - Opportunity to unlock more value from Nova 22
Slide 23: As we go from strength to strength
Nye Nad “AS WE GO FROM STRENGTH TO STRENGTH igo.com.au
Independence Group NL (IGO) — Shareholder Meeting (November 2017) on 6ix